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Kingdom of Saudi Arabia

VATExperts is a privileged exclusive license holder of VATGlobal in the Kingdom of Saudi Arabia. It is part of Arab Experts Consulting (AECOC) – Saudi based financial management consulting firm with proven track record in financial advisory and compliance management for major Gulf businesses.
Headquarter:  Dammam; Branch Offices in Riyadh and Jeddah.

Our team is comprised of Big 4 Qualified Accounting professionals who have the right knowledge and experience across a broad spectrum of industries/ sectors (Manufacturing, constructions, trading, financial services, hospitality, technology, transportation, healthcare and shipping), along with a distinctive approach, that makes us uniquely qualified to help you.

Our extensive experience and understanding of the technical aspects and local laws, regulations, and market dynamics in the GCC region combined with our Global support will enable us to address all your issues.

Our networking strengths differentiate us from our competitors, our abilities of high level contracts and internal relations bring value to the transactions we deal in.

VAT in Saudi Arabia is the lowest in the world

Goods and services in scope of VAT

Taxable businesses 
All businesses whose taxable sales in the past 12 months or expected taxable sales in the next 12 months exceed SAR 375,000 are required to register for, collect, and remit VAT. In 2018, only businesses whose taxable sales in the past 12 months or expected taxable sales in the next 12 months exceed SAR 1,000,000 are required to register for, collect, and remit VAT. Additionally, there are two groups for whom the VAT is optional:
  • Firms with taxable sales of SAR 187,500 – 375,000:
    Companies with taxable sales in the past 12 months or expected taxable sales in the next 12 months between SAR 187,000 and SAR 375,000 can choose to register for the VAT or not.
  • Firms with taxable sales above SAR 375,000 who sell exclusively “zero-rated” products: 
    Goods and services such as certain medical products, international transportation, and exports to non-GCC countries are all “zero-rated”, meaning zero VAT will be charged. If a firm has VAT-eligible sales above SAR 375,000, but its revenue is exclusively from zero-rated goods or services, it has the option to register for VAT or not. 

VAT Registration

The deadline for VAT registration depends on the business’s annual taxable sales:
  • Businesses with annual taxable sales over SAR 1,000,000 must register by December 20, 2017
  • Businesses with annual taxable sales under SAR 1,000,000 must register by December 20, 2018
Registration of non-KSA residents 
Non-KSA residents who make VAT-eligible sales and purchases in the Kingdom are required to register for and pay VAT. In order to register for VAT, non-resident businesses have to appoint a tax representative in KSA.

That representative, once approved by GAZT, is able to submit VAT returns and payment to GAZT and correspond with the Authority on the taxpayer’s behalf. The representative will be held jointly and severally liable the VAT the business owes to GAZT.

That means that if the business fails to pay tax for an extended period of time, the tax representative can be held personally responsible for the remaining balance. 

How to remit VAT

When to file and pay your VAT return
Taxpayers must file their VAT returns and pay their tax bill by the last day of the month following the end of that tax period. Note that tax periods will always end on the last day of the month, so returns for each period will be due on the last day of the following month.

The tables below show when VAT returns are due for the two groups of taxpayers: businesses with annual taxable sales above SAR 40 million who have to file monthly returns and businesses with annual taxable sales under SAR 40 million who have to file quarterly returns. 
  • Tax Period Dates 
  • Tax Period Dates 
  • Returns and Payment Due
  • Return and Payment Due
  • January 1-31
  • February 28
  • July 1-31
  • August 31
  • February 1-28
  • March 31
  • August 1-31
  • September 30
  • March 1-31
  • April 30
  • September 1-30
  • October 31
  • April 1-30
  • May 31
  • October 1-31
  • November 30
  • May 1-31
  • June 30
  • November 1-30
  • December 31
  • June 1-30
  • July 31
  • December 1-31
  • August 31
Quarterly VAT
  • Tax Period Dates
  • Tax Period Dates 
  • Returns and Payment Due
  • Return and Payment Due
  • January 1 – March 31
  • April 30
  • July 1 – September 30
  • October 31
  • April 1 – June 30 
  • July 31
  • October 1 – December 31
  • January 31
Penalties
  • Tax Period Dates 
  • Associated fine
  • Submit false documents to evade the payment of the VAT due or to reduce its value
  • • More than the amount of the VAT due 
    • Less than three times the value of the goods or services
  • Move goods in or out of the Kingdom without paying VAT due
  • • More than the amount of the VAT due
    • Less than three times the value of the goods or services
  • Do not register for the VAT in the allocated timeframe
  • SAR 10,000
  • Do not file VAT return in time
  • 5-25% of VAT due 
  • Do not pay the VAT in time
  • 5% of the VAT due for each month
  • Collect the VAT without being registered
  • Up to SAR 100,000
  • Do not maintain books and records as stipulated in the regulations
  • Up to SAR 50,000
  • Prevent the employees of the Authority from performing their duties
  • Up to SAR 50,000
  • Violation of any provision of the VAT regulations or the VAT law
  • Up to SAR 50,000